President Barack Obama confirmed Monday that budget chief Jack Lew will replace resigning White House Chief of Staff William Daley.

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During a statement from the State Dining Room, Obama said he did not accept Daley's resignation right away.

"Obviously, this was not easy to hear and I did not accept Bill's decision right away," Obama said.

The president said he will "deeply miss having Bill by my side at the White House" and will continue to seek out his advice after his departure.

But Obama said his replacement, Lew, has his "complete trust," adding that is "not only because of his mastery of the numbers, but because of the values behind those numbers."

Daley submitted his letter of resignation to Obama during a private meeting last week, The Los Angeles Times reported, adding that Lew will take over managing the president's team at the end of the month.

The timing of the shift will allow Daley time to finish crafting Obama's State of the Union address and give Lew the opportunity to finish the administration's budget proposal, FOX News reported.

William Daley Resignation Letter